Yum China files to issue 10 million shares to Yum employees

(Reuters) - Yum China Holdings Inc, which is being spun off from KFC owner Yum Brands Inc <YUM.N>, filed with regulators on Wednesday to issue 10 million common shares to certain participants in Yum incentive plans.

Yum Brands, which also owns Pizza Hut, said in October that it would spin off its China operations through a distribution of common shares to its shareholders.

The 7,200-restaurant China division, which operates in over 1,100 cities, is higher risk and potentially more rewarding, while Yum Brands sans the China division is likely to be more stable with greater cash flow.